What Does Term Insurance Mean? What Are The Advantages?

Term insurance plan is a kind of life insurance plan that offers financial protection to your family at a very reasonable cost. The object of this Insurance plan is to make sure that the financial needs of the policyholder's family is well taken care of after his or her unfortunate demise. The sum assured was paid to the family in case of demise of the assured within a specified time period. 

A term insurance is like a back up plan that will support your family if something unfortunate happens to you in the near future. It will provide much needed financial support to meet your family's daily expenses and fulfill their long term goals (like children's education, marriage, etc.) Also with the help of riders, you can cover disease and disability under a term insurance plan. It is one of the most affordable ways to protect the financial future of the family.

Benefits of Term Insurance

Here's a list of a few benefits of term insurance plans:

Financial Stability

This is the basic reason why people opt for any kind of insurance and rightfully so. The death of the breadwinner of the family or any other earning member can turn the life of the remaining family members upside down. In such a situation, managing household expenses and taking care of the basic needs of the family becomes an extremely difficult task. Term life insurance provides a complete sum assured at the time of death and can make life of the remaining family members easier, albeit financially.

Securing the Future

Every earning member of the family has some responsibilities and obligations towards his/her spouse, children and parents. Death can effectively stop you from meeting those obligations. With term life insurance plans, you can plan your future accordingly. In the event of your death, the payment from the insurance company will ensure that your children will get a good education and have funds for their marriage. Similarly, with the right term insurance plan, your spouse and parents can also have a comfortable life without facing any financial hardships.

Debts

Almost every individual has some or the other loan. It can be an auto loan, home loan, personal loan or education loan. The proceeds from the insurance pay off your loans along with interest and ensure that the burden of these borrowings does not fall upon your family.

Massive Coverage, Low Premiums

Due to the absence of maturity benefits and other complexities, the term insurance plans offer high coverage at premiums which are affordable to the majority. Cost of, if you buy life insurance plans online, the premium rates are even lower due to the absence of agents and middlemen.

Features of Term Insurance Plans

The main features of a term insurance plan are as follows: 

Affordability 

Because the policy covers the death benefits hence they charge a very low premium. Due to this reason more people find it reasonable to put their money in term insurance.

Higher Coverage

These term life insurance policies do not put any form of limitations in their coverages. Hence one can choose higher coverage plans as per their requirement for a better and secured financial future.

Long Term Coverages

The coverage periods of these term life insurance plans comes with a very long term. These plans can cover upto 40 years which freely allows the purchaser to enjoy the policy till very old ages.

Variety of Premium Payment Terms

The premiums of these term life insurance plans can be paid either monthly or all at once. It is the discretion of the policy purchaser how he wants to get covered at the end of the term. Moreover, there are a wide array of premium payment terms available with these plans.

Conclusion

This article covers most of the reasons which proves that term insurance plans are growing in India. The term life insurance plans are reaching out to more and more people because of the benefits they provide and also their key features that have been clearly said in this article. 

Also Read: How Much Coverage For Term Life Insurance